Yahoo Finance Heinz defeats Tesco in baked beans price row
Tesco has bowed to pressure from the US owner of Heinz following a price row and agreed to pay more to keep supermarket shelves stocked with baked beans and ketchup.
Heinz, which is owned by Kraft Heinz, and Tesco said they had resolved a row over pricing which had seen supplies paused by the US group when Tesco refused to pay more for its products. Heinz sets a cost price for its goods, and then recommends what price retailers can sell them at.
In a joint statement, the companies said: "Tesco and Heinz are pleased to have reached an agreement that will see the full range of Heinz products return to Tesco shelves and online, continuing to offer our customers great value on the nation’s favourite Heinz varieties.
“Lorries full of Heinz products including Heinz Tomato Ketchup and Heinz Beanz will hit the road shortly, and Tesco colleagues will be working hard to ensure shelves are filled again over the coming days."
Tesco is understood to have agreed to pay more for Heinz products, after having previously said it was seeking to protect its customers from "unjustifiable price increases”.
The supermarket had previously been selling Heinz products for less than its rivals. Figures from Assosia, compiled for the Telegraph, showed a 415g can of Heinz baked beans was on sale for £1 at Tesco, compared to £1.20 at Asda and £1.20 at Sainsbury's.
Heinz ketchup, meanwhile, was selling for £2 in Tesco, compared to £2.79 in Asda and £2.80 in Sainsbury's.
The row had meant stocks of Heinz products were running short in many of Tesco's stores and online. Deliveries are expected to start arriving in Tesco stores from early next week.